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Report

4 Jul 2017

Author:
Feifei Cai, Jinfei Yue, Jialin Zhang & Jiyan Chen, Social Resource Institute (SRI)

Report: The Social Responsibility of China's OFDI and NGOs' Engagement - Taking the Myanmar Letpaduang Copper Mining Project as an example

…[T]his research identified Myanmar as the targeted country and the [Letpaduang Copper Mining Project] (LCMP) as an example to explore social and environmental law and policy framework as well as social and environmental impacts of FDI in Myanmar. Meanwhile, we try to analyze the conflicts, challenges and the complicated relations between stakeholders in the case and summarize the lessons and experience for Chines companies.

the LCMP…has aroused broad concern and wide stakeholders’ engagement due to the crucial change of Myanmar institutional context and the complex background and problems in the history of the project. In the ongoing conflicts, Myanmar government was both the supervisor and partner of the project, and their immature governance frame and capacity added to the severity of the conflicts. In an environment of relaxed social regulation, civil society…had the chance to express their demands, which broadened the concern about and supervision of the project from greater society. However, as the directly affected subjects, the villagers had varied demands, which were characterized by diversity and contradiction with each other.

…Sticking to the sole criterion of abiding by local laws and regulations is not enough for Chinese companies to attain social license…. Looking at the lessons and experience of the LCMP, it is important that Chinese companies need to work with third party especially NGOs to carry out ESIA and community consultation based on the rules of FPIC, to dynamically evaluate and monitor the demands and attitudes of stakeholders and set up mechanism for affected groups to express their demands, which will help companies to lower social and environmental risks and better their reputation.